While most supply chains need this, it is particularly important in retail.
Retailers and FMCG (Fast Moving Consumer Goods) firms continue to expand their product portfolio.
Although this provides customers with more choices from a supply chain management perspective, it poses enormous challenges.
Considering the space constraints, customer preference, and profitability, retailers must decide the assortment plan.
Assortment planning refers to selecting the right product mix at right quantities to adequately match the market demand.
The first dimension is “width” that refers to the number of different product varieties (categories). The second dimension is “depth”, that refers to the different brand options within one particular variety (category).
What changed now ?
With the current situation, retailers must evaluate the questions below :
How to best utilize the existing inventory (at store and in-transit)?
Are there any modifications needed to existing orders?
What is the best plan with the existing inventory that will maximize the profit?
Steps that need to be taken
Keeping a count
of inventory
particularly the
perishable
products.
Lowering the
width (number of
varieties) of
product portfolio.
Using AI to have
the best product
mix and pricing.
Diversifying into
omni-channel
retailing.